Icon Exploration Inc.’s (TSX.V: IEX.H) primary objective is to create a well-diversified company focused on assessing and potentially acquiring targets in the cannabis industry. Icon Exploration recently signed a formal share exchange agreement relating to its proposed acquisition of privately held City View Green (“CVG”), a vertically integrated cannabis company incorporated under the laws of Ontario, Canada. CVG’s application to Health Canada for an Access to Cannabis for Medical Purposes Regulations (“ACMPR”) license is now at the in-depth review stage of the licensing process.
CVG is preparing a 40,000-square-foot growing facility near Toronto to produce pharmaceutical-grade cannabis once its ACMPR license is granted. About half of the facility will initially be outfitted with state-of-the-art LED lighting, HVAC and dehumidification systems, and automation technologies to optimize the quality, safety and consistency of cannabis production. About 4,000 square feet will be devoted to an extraction laboratory featuring an ultra-efficient CO2 supercritical extraction process with plans to include ethanol extraction technology in the future.
Another 4.3 acres remains available for future construction of up to 125,000 square feet of grow and extraction space. Production plans include producing high quality edible products, distillates, and water-soluble products for the rapidly expanding CBD-infused (cannabidiol) beverage market.
Icon and CVG have assembled a talented team that includes a Master Grower with cannabis-industry experience to manage indoor grow operations and an extraction expert whose expertise in developing and launching new products was honed while working in Washington state’s cannabis sector. Having gained experience in the Washington state market the extraction expert has a number of brand ideas and recreational cannabis products that became popular in the Washington market as well as a number of in-licensing branding opportunities available to CVG. CVG has also negotiated an agreement with a private company seeking 37 retail cannabis licenses in Alberta, Canada, that provides a reciprocal exchange of shares, product, shelf space and distribution lines. Early discussions with various entities in Europe to arrange an off-take agreement for CBD oils and extracts are also underway.
The Canadian medical cannabis market has steadily been growing with an average 10 percent increase in patients each month. Now that the Canadian federal government has legalized recreational cannabis for adult users nationwide, analysts project a compound annual growth rate of nearly 78 percent from 2018 to 2021, reaching an estimated $3 billion by 2021, ArcView Market Research reports. One study from Deloitte pegged the potential economic impact of legalized medical and recreational marijuana in Canada – including transportation, licensing fees and security – at more than $22 billion over the coming years. Health Canada’s most recent data show that sales of cannabis extracts grew 961 percent in the second quarter of 2017, compared to an 89 percent increase in growth of dried cannabis during the same period.
- Experienced cannabis industry experts and Master Grower at helm of state-of-the-art indoor grow facility
- Facility in prime location for expansion in business-friendly city near Toronto, Canada
- Established cannabis consultants assisting with CVG’s ACMPR application as it moves forward through Health Canada’s licensing process
- Agreement with private company to open access to retail market in Alberta, Canada, once CVG’s cannabis products are approved for sale
- Cannabis industry analysts predict potential shortfall of cannabis products in Canada as demand soars under full legalization
- Extensive brand experience and in-licensing branding opportunities for recreational cannabis products.
- Canada’s cannabis industry projected to exceed $22 billion over the coming years